[Corporate Values] For whom was the company created?

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This post was last edited by lovelife1997 on 2019-8-31 12:22. For whom does a company exist? In fact, neither shareholders nor customers are permanent elements of a business. It is the internal staff, including founders, senior management, and employees, who constitute the essence and soul of a company. A company that puts the interests of its internal employees first is a good organization, one that people are willing to work for. A company is a platform and a place. Like any social organization, a company carries the diverse expectations and dreams of participants with various motives. We come from all over the world and have come together to achieve our respective goals. When there is enough overlap and intersection between our goals, we develop a sense of belonging and identity toward the organization in which we all participate. Thus, a group of natural persons with various motives becomes a so-called organization that has at least a nominal common goal. This common goal may be the supreme social ideal or value aspiration, it may also be simple and straightforward secular utilitarianism and a secure livelihood, or it might be a combination that takes into account both material and spiritual aspects, aiming to achieve both fame and wealth. In this way, viewing a company merely as a purely economic entity that functions like a profit-making machine also seems to be a kind of wishful imagination and imposition. Upon careful consideration, not all companies put profit first. Profit is merely an outcome of business operations; it indicates that a company has managed to meet the needs of certain consumers or certain groups of stakeholders well, allowing it to continue operating and growing with relative ease. Profit itself, as well as meeting consumer needs, may merely be necessary means for a company’s long-term survival and development, rather than being the ultimate goal. For whom does a company exist? Whose goals and demands should be reflected primarily? Maybe some people would say shareholders, because shareholders are the so-called owners of a company. In fact, what shareholders care most about is whether the company can generate profits for them; they can buy and sell their \"ownership\" in the stock market at any time. Day traders can even buy and sell your business several times within a single day. Therefore, shareholders are not a constant in a business. Do companies need shareholders more, or do shareholders need companies more? Generally speaking, if you have entrepreneurial talent or management skills, investors will come to you; whether it’s venture capital, angel investors, private equity, or the stock market, money isn’t an issue at all. Companies primarily do not exist for investors. On the contrary, investors exist and serve businesses; they are merely providers of one of the factors of production (capital). Companies must realize that there is actually a transactional relationship between them and investors as well; there is no need to be overly sentimental and sacrifice themselves to serve them. Others say that businesses exist for customers. In fact, customers are merely an excuse and a tool for a company to survive. Although everyone repeats that \"the customer is king.\" But the truth is you don’t dare ask God for money. God loves all beings, but most customers are opportunistic; what they want is not your admiration, but a straightforward cost-performance ratio. “\"Customers are the ones who provide food and clothing,\" say the merchants in such a humble manner. However, a mother does not disdain an ugly child, but most customers are untrustworthy human traffickers. If better children appear on the street, these parents will immediately abandon their current children. What businesses need are their own skills and capabilities, which enable them to earn the trust of generation after generation of customers. So, customers are actually just those who rush to pay the company on time and in accordance with its requirements. At its core, the purpose of establishing a company depends on the founders’ needs and aspirations at that time. Supporting a family, achieving success, keeping up with trends, passing on skills, expressing individuality, showcasing interests, helping others, benefiting the community, legitimate excuses, hiding secrets. These complex yet concrete initial objectives largely determine a company’s growth trajectory, influence its development path, and shape the achievements it may attain. Some companies adhere to their ancestral traditions, placing craftsmanship first; they would rather not make a profit than compromise the quality of their work. Some family businesses have, from the day they were founded, adhered to a basic principle: that a family business is merely one aspect of family affairs. The interests of the company must take precedence over those of the family; it is not the family that should sacrifice itself to serve the interests of the company. There are also some companies whose founders may be more concerned with using the company to pursue certain social ideals and responsibilities. Therefore, profit cannot be its fundamental goal, nor even its main goal. The goals of a company are, naturally, the goals of its people. From the founders to their entrepreneurial team, to the successors and senior management team, from core employees to regular staff, these people are the actual participants and practitioners in a company’s business activities; they constitute the essence of a company, its true core and soul. After all, a company is an enterprise run by its people; it is the place and means through which they make a living, carrying their dreams and aspirations. Logically, their goals should be the company’s goals. Their well-being is the well-being of the enterprise. Serving customers is ultimately for the benefit of the people within the company themselves. External financing, in the end, also serves to better meet the interests of the company’s employees by satisfying the profit-seeking desires of capital providers. A good organization is one that, as always, works to benefit its members; it is the kind of organization people are willing to be part of. A company that puts the interests of its internal employees above those of all external stakeholders is an honest and responsible company that takes care of itself. Internal personnel = founders + management + employees. The interests of internal personnel are given top priority, and this can be understood through three levels: the founders (the top leaders), the executive team and key staff, and all employees. Firstly, a business exists to fulfill the personal goals and needs of its founder (or successor leader), including both economic and non-economic ones. In the 1980s, Ben&Jerry’s, an American ice cream company renowned for its strong sense of social responsibility, mandated that the ratio of the highest wage to the lowest wage in the company should not exceed 5 to 1. This egalitarian-style institutional arrangement embodies the social ideals of the two founders: opposing mainstream capitalism and established business norms, promoting social justice, and showing concern for vulnerable groups. Obviously, this arrangement does not conform to the prevailing business logic, and it hinders the improvement of operational efficiency as well as the motivation of executives. But the frontline employees received extraordinary rewards and treatment. From an external perspective, such companies seem to place the interests of their employees at the highest priority. But in essence, a company remains a tool for its founders to realize their social ideals. As the actual beneficiaries, frontline employees are merely props. The two founders, as owners, became millionaires, but the members of the subsequent management team earned very meager salaries when compared to those of their peers in other companies. As a result, companies ultimately lack the drive for rapid growth. At this time, the interests of internal staff were given top priority, without truly including the management as the core members of the company. Secondly, the principle of putting interests first can also extend to include the collective interests of the executive team and key personnel. In those companies that provide various professional services under a partnership system, whether they are consulting firms, law firms, or firms engaged in accounting, auditing, or brokerage services, the key employees are both owners and employees. What they consider first are the long-term interests of their own group. In daily operations, the usual approach is not that the boss, as the top leader, tries to achieve his own ambitions and ideals by sharing profits with other key members; rather, it’s more likely that these key members collectively elect a leader to serve them all, thereby seeking greater benefits for the entire group, whether in terms of material rewards or professional honors. In such companies, newcomers who have not yet reached the core team level also enjoy good benefits, as well as potential pathways for advancement and opportunities to join the core team through performance. Before they become key members (partners, senior partners), their interests can at most be benefited from, and the company’s attention to them is only based on their ability to bring tangible benefits to the company. Finally, putting the interests of internal employees first means, under the existing social norms and institutional arrangements, ensuring that employees at all levels receive the greatest benefits – better advantages compared to employees in other companies who hold similar positions, as well as a more respected status and enviable treatment, along with broader and superior opportunities for growth and advancement. In an ideal situation, everyone does what they want to do and finds joy and satisfaction in it. The renowned Southwest Airlines, guided by the principle of \"love\" and centered around the theme of happiness, brings together people who are truly committed to working in the service industry. It pays attention to the personal lives of its employees, offers flexible work schedules, supports employee stock ownership plans, and encourages collaboration both among employees and between different departments. Working here is less about pleasing customers and more about pleasing oneself. In fact, Huaxi Village under Wu Renbao’s leadership can also be considered an enterprise that operates based on the logic of giving priority to the interests of its internal staff. Its ultimate goal is the common interests of the people of Huaxi Village. Its existence is not for **, not for society, nor for some popular policies or trendy ideologies; although these factors can be used by Huaxi Village as excuses, platforms, and resources. Moreover, Huaxi Village can also be used as a model by various external stakeholders, who may exploit it, praise it, or criticize it. How to prioritize the interests of internal staff. Putting the interests of insiders first essentially means putting oneself first. Take oneself as the subject, and everything else as objects. All other people, institutions, and elements are there to be used by me, to serve me. An extreme example might be a company that maximizes the salaries and benefits of its internal employees, thereby increasing labor costs, and minimizes profits and taxes – in other words, it uses its own earnings to cover those expenses. Some people might say that a company is not a family, and you can’t expect it to support you for the rest of your life. Actually, it can be put the other way around. You can’t choose where to be born, but you can choose to establish or join an organization that is more reliable than a family, a company that is better than a family. It is an ideal as well as a practice. When almost all companies are pursuing profit under various appealing pretexts, such sincere and unhidden dedication to the interests of internal employees, along with an individualistic approach, becomes particularly valuable and rare; it requires greater moral courage and commitment. So, what are the specific characteristics of companies that prioritize the interests of their internal employees? We can analyze it from aspects such as compensation, promotions, job transfers, recruitment, exits, retirement, and crisis management. Salaries and benefits: The interests of internal employees are given top priority, as reflected in the generous salaries and benefits offered. Employees are not merely human resources or cost factors; they are the owners of the company. The protagonist’s role is not imaginary or nominal, but real and crucial. Companies that expect their employees to operate on a basis of dedication for the long term are nothing other than cults with ulterior motives. Employees of some well-known multinational companies who fly in first class and stay in five-star hotels may come under criticism from investors. These companies will also retort: Our employees are the best in the world, and they deserve the best treatment. Internal promotion: Giving priority to the interests of internal employees is also reflected in the practice of internal promotion. When the qualifications of internal and external candidates are comparable, internal candidates are given priority for promotion. Of course, if a company does not have the necessary talent available internally, it does not rule out the possibility of hiring experts from outside. This institutional tradition that emphasizes internal development not only provides pathways and opportunities for advancement for employees at all levels within the company, but also ensures that its culture centered on the individual is preserved and passed down. Whether it is Procter & Gamble or GE, the successive CEOs have served in those companies for an average of around 30 years. Internal transfer: Internal transfer is one of the important measures for talent mobility and development within a company. For those who have contributed to the company, when their current roles or skills are no longer suitable for the company’s development needs, the company should help them explore opportunities to work in other areas or departments within the company, assist them in applying their existing skills in new fields, or enable them to acquire new skills through learning and training. From technology to management, from the front line to the back office, from hands-on work to consulting. Internal job transfers within a company contribute to the stability and overall development of the workforce, and can mitigate the significant disruptions that may arise from large-scale organizational and personnel changes. Such planned job transfers also ensure, through institutional mechanisms, that those who are no longer meeting the requirements of their positions leave them in an orderly manner, while allowing more competitive new talent to be continuously brought in to fill key roles. Recruiting new members: Recruiting new people is perhaps the most crucial decision for such companies. Selecting individuals with shared values, strong professional skills, and excellent learning abilities forms the talent foundation for a company’s long-term development. Firstly, sharing common goals means that the individuals recruited strongly identify with the company’s objectives. Companies should not favor talents who are highly capable but not well-aligned with the company’s core goals and organizational culture. For example, Southwest Airlines openly practices favoritism, encouraging its employees to recommend people who are similar to themselves for employment. Secondly, on the basis of shared values, it is important to hire people with strong professional skills, as this helps maintain the vitality of the company. Putting the interests of insiders first is not about engaging in charity or blindly protecting and showing kindness to the weak. If a company can’t survive, its employees won’t have anything to eat either. Finally, recruiting people with strong learning abilities helps them keep up with the times and acquire new knowledge and skills, as well as facilitating internal job transfers. Exit mechanism: The exit mechanism is an important element in ensuring the vitality of a company. Putting the interests of internal staff first does not mean sticking to outdated methods or forcing things to fit in anyway; everyone must stick together no matter what. If there are other better opportunities for development, companies should allow or even encourage their employees to pursue those opportunities elsewhere, so that they can leave the company in a dignified manner, both in practice and in name. Leaving does not mean betrayal. Companies still treat employees who leave them as their \"graduates,\" seeking to retain and enhance their goodwill toward the company through mechanisms such as alumni associations. For example, some companies stipulate that those who have worked for the company for a certain number of years can return to work there at any time after leaving, while retaining their previous rank and benefits. It can truly be said to be the utmost in kindness and righteousness. Treat seniors well: Employees have devoted their best years to the company and made significant contributions to it; even when they are no longer in their prime, they should still feel the company’s support, whether in terms of their position and benefits before retirement or through care and recognition after retirement. The way a company treats its long-serving employees has a strong exemplary effect on its working employees in their prime. It is possible to clearly determine whether a company truly puts the interests of its internal employees first by looking at how it treats its former employees – those who can no longer add value to the company. Putting oneself first and giving priority to internal matters may be easy to achieve in good economic times, simply by offering favorable benefits. And it is in the face of crisis that a company is truly put to the test. Under the pressure of performance and survival, some companies close down their factories, lay off employees, and disappear, while others cut salaries collectively to retain their key staff and ensure their employment. If poor management is caused by misdecisions at the higher levels, it is unfair to expect lower-level employees to sacrifice their own interests. If it is due to external trends and threats, companies must consider their own long-term survival; in such cases, layoffs are necessary and generally understandable, as if the company cannot survive, it will be many more people whose interests are sacrificed. At this point, sacrificing short-term interests is to ensure long-term benefits. It is also unreasonable to impose on enterprises responsibilities that they are unable to bear. But the sacrifices at this time should come from everyone working together as one, rather than only employees sacrificing while management or key staff remain unaffected. Before a major crisis, companies should properly settle laid-off employees. After a major disaster, former employees who wish to return to work should be given priority. Even if you sincerely and unreservedly place profit at the top of a company’s business objectives, you won’t necessarily achieve profits. Even if you set the interests of internal employees as the top priority, it doesn’t necessarily mean you won’t make a profit. Whether a company is profitable or not is the result of its operations, while deciding what to regard as the most fundamental goal for a company to pursue – people or profits – is a matter of worldview and belief. Harmony and fairness are values in themselves that deserve to be pursued. People are fundamental, not a means. The world is diverse, and businesses come in many forms. Companies that dare to put themselves first and prioritize the interests of their internal staff over those of everyone else should have a place in the corporate world. Companies that put themselves first and prioritize internal matters will surely have supporters, and employees who share such values naturally also strive to find such companies. Finally, we reflect on corporate actions through the actions of non-profit organizations. So-called non-profit organizations often actually generate significant profits; they just don’t refer to those profits as such. The people in such organizations usually care more about themselves and take better care of themselves than those in any company, striving to maximize their own interests. A large portion of the profits went to him. Those who work in companies must ask themselves: for whom are we actually generating profits? A prominent Chinese business leader said it well: I don’t give donations to others easily. To make donations, I first give to my own employees, rather than to people I don’t even know. The words may be harsh, but the truth remains. Treat the employees who work with you kindly. You may not know the so-called investors, consumers, and various stakeholders. But you must know the brothers who fight alongside you every day, right?